Electronic Cigarettes International Group Ltd fka ECIGQ

[voice-of-reason]

This will close below $.12 possibly $.11. If there's no great news after hours this will drop like a stone to .09 by 9:50am. People keep referring to growing revenues but they refuse to accept the "cost of revenue." There's EXTREMELY low profit margins when you factor in that #. Once you exclude the "goodwill assets' which refer to patents and brand value, then this company is in HORRIFIC unmanageable debt. Ecig plans on marketing their wares in China, a place where everything gets knocked off - waste of time and money. Considering their advertising is super cheesy, unlike blue ecigs which got bought out, the value of their BRAND (intangible assets) is worthless. Anyone who can read a balance sheet knows this company is headed to bankruptcy because no tobacco company is going to buy them out. 31 mill in rev for the last 9 months and "cost of revenue" 22mil. That gives them an 11 million dollar profit for that past 9 months. But now you have to subtract operating expenses for the 9 months (120 million) . That makes gross profit (-100 MILLION) for the 9 months. Now add interest paid on short an long term loans and the 100mil # grows to an absurdly large #. The reverse stock split is a desperate attempt to offer their creditors more convertible notes which will dilute current shareholders. If there's a 10-1 spilt your shares will now be worth $1.35 at today's market price but they will inevitably get shorted by the creditors. This stock is headed to bankruptcy by year's end.